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Construction Law Authority / 2012 (Page 5)

Did You Include All Costs In Your Bid?

April 17, 2012
William J. Cea
Procurement

So it is time to sign your price proposal and get your bid in to a public agency. Have you considered all costs to perform the work, and those that are in addition to the cost of labor and materials? The public agency's terms and conditions should spell out all of the costs that are to be included in the price proposal. Such costs may go well beyond the cost of the work itself. For example, it may be that the cost of bonds, additional insurance coverage, permits and inspections are to be included in the cost of the work, and therefore the bid amount. It is also important to include all required elements as part of your pricing to make sure that your bid is responsive. Accordingly, it is imperative that bidders carefully consider all requirements that have a cost when estimating and calculating a bid. Generally, a public agency may...

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HB 1013 (SB 1196) presented to Governor Scott

April 16, 2012
Sanjay Kurian
Legislation

HB 1013, which eliminates common law implied warranties in common areas of all communities in the state, was sent Friday to Governor Rick Scott for his consideration. Governor Scott has until April 28, 2012 to act on the bill. He can sign the bill into law, veto it, or allow it to become law without his signature. This legislation leaves Florida home buyers with no protections for shared amenities and thereby shifts the burden for repairs to the homeowners and we urge Governor Scott to veto HB 1013. If you have not yet contacted Governor Scott, please do so and urge him to veto HB 1013. It is the only way to prevent this bill from becoming law.  You can e-mail Governor Scott at Rick.Scott@eog.myflorida.com and copy his Legislative Affairs Director, Jon Costello, at Jon.Costello@eog.myflorida.com. You can copy and paste the following suggested text in your message to the Governor: Please veto HB 1013, which eliminates common law...

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Orlando Sentinel Editorial Opposes HB 1013

April 6, 2012
Sanjay Kurian
Legislation

The Orlando Sentinel Editorial page of April 4, 2012, has come out in opposition to HB 1013, the anti-common law implied warranty legislation.  The editorial is reprinted in part below. To view the full editorial please follow the link.  Do not forget to contact the Governor's office to veto this legislation.  Editorial Below- When a leaking underground drainage system pitted roads and driveways and created sinkholes in lawns at aWinter Garden subdivision, homeowners sued the developer to cover the damage and repair costs. After conflicting rulings in lower courts, the case reached the Florida Supreme Court, which heard arguments on it in December. But before the justices had issued a ruling, the Florida Legislature stepped in like Judge Judy and moved to decide the case — and any future ones like it — in favor of the developer. Lawmakers often carp about being pre-empted or overruled by "activist judges." But in this case, lawmakers trumped the judges. Lobbied...

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Ask the Governor to veto HB 1013(SB 1196)

April 5, 2012
Sanjay Kurian
Legislation

The Governor's office has received numerous calls and emails in opposition to HB 1013, the anti-implied warranty legislation.  We are asking that you continue to urge Governor Scott to veto HB 1013.  It is the only way to prevent this bill from becoming law.  The bill has not yet been sent to the Governor for consideration, but we expect it to be sent very soon.  Therefore, please contact Governor Scott as soon as possible so that your voice can be heard. You can e-mail Governor Scott at Rick.Scott@eog.myflorida.com and copy his Legislative Affairs Director, Jon Costello, at Jon.Costello@eog.myflorida.com.  You can copy and paste the following suggested text in your message to the Governor:  Please veto HB 1013, which eliminates common law implied warranties in common areas of all communities in the state.  This legislation will result in greater costs for Florida’s homeowners, in the form of repairing shoddy construction, and ultimately lead to more foreclosures.  This...

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Prominent Investor in P3 Projects Speaks About Florida’s Prospects

March 27, 2012
Lee Weintraub
Procurement, Public Construction

 

Jane Garvey, the North American Chair of Meridiam Infrastructure, knows a thing or two about public/private partnerships (“P3”). Meridiam is one of the country’s leaders in P3 projects, from compiling the P3 team and fertilizing it with ideas and experience to investing in the enterprise as a shareholder or lender. Jane is their top person in North America and shared her thoughts with me about Florida’s potential for P3 development. In this blog post and some that will follow, I will share her thoughts with you.

P3s are not ideal for every job. They’re more appropriate for large, complex, innovative projects not neatly fitting into traditional capital programs. The project must be critical to the public owner, as criticality will ensure the facility will be operated for the long-term, thus generating the necessary operational revenue to repay private investors and contractors for their risks. Criticality also ensures strong public sector buy-in, as lack of public commitment to the job may dilute the prospects of success. Historically, critical projects have included transportation as well as social infrastructure, such as schools, courthouses, and teaching hospitals.

 

The proposed P3 project must have a good revenue stream or it won’t attract investors or lenders. Stable revenue tied to the job, such as shares of federal funds, sales taxes or impact fees, will lure investors. Riskier prospects may deter investors. Without private funding, the P3 delivery method will fail, so it is important for funding to be attracted through assurances of stable revenue sources from which investors may earn an appropriate return on their investment.   

 

 

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Letter to Governor Scott re: HB 1013/SB 1196

March 21, 2012
Sanjay Kurian
Legislation

Below is the text of a letter sent today by Alan Becker, Esq., a founding shareholder of the Becker & Poliakoff, asking Governor Scott to veto HB 1013 which wiped out common law implied warranties for common area property.  We are requesting that you join us and ask Governor Scott to veto this legislation. Dear Governor Scott: I am writing to you with regard to the recently passed HB 1013 (companion SB 1196, “the legislation”) which eliminates common law implied warranties as it pertains to common areas of all communities in the state and asking that you veto this legislation. I was a member of the legislature when what is now section 718.203, providing statutory implied warranties for condominiums, was enacted and am a founding member of Becker & Poliakoff, P.A. which represents close to 4,000 community associations in the state of Florida. With that background, I can state that this legislation is absolutely harmful to consumers, will result in...

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The Good Faith Exception to Fraudulent Liens

March 15, 2012
Ryan Carpenter
Cases, Construction Liens, Contracts, Litigation

The good faith exception to fraudulent liens does not protect all liens recorded in good faith from being deemed fraudulent. With the holding in Medellin v. MLA Consulting, Inc., it is more important than ever for a lienor to be sure the amounts in its lien are for work that will properly support a lien, or it runs the risk of its lien being deemed fraudulent....

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SB 1196 Passes

March 9, 2012
Sanjay Kurian
Legislation

Unfortunately SB 1196 passed the Senate yesterday. The next step for the bill will be the governor's desk. The only way the bill does not become law at this point is if the governor vetoes it. If he signs it or merely does nothing the bill becomes law and will take effect, by its terms, on July 1, 2012. The negative impact of this legislation will be substantial for Florida homeowner's. However, it is fairly certain that there will be challenges to the legislation. How effective the challenges will be remains to be seen. What impact, if any, the legislation has on the Maronda case pending before the Florida Supreme Court will also be interesting....

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